Disclaiming an IRA
The owner of a traditional IRA died in September 2008. The spouse (sole primary beneficiary) wants to disclaim the IRA so that it passes to the daughter (sole contingent beneficiary).
1. If the spouse disclaims, is there any way that the IRA would not pass to the daughter (there are no other beneficiaries listed on the IRA)?
2. Does the spouse’s disclaimer letter need to state anything other than the spouse’s desire to refuse the IRA?
Thanks,
Anne
Permalink Submitted by Alan Spross on Mon, 2008-11-03 03:16
1) No, as long as the disclaimer meets the requirements of Sec 2518. Note that if the spouse takes the remainder of the decedent’s RMD for 2008, it will not disqualify the disclaimer, despite the wording in Sec 2518, link following.
2) If you have legal counsel, you might want to have them draft the disclaimer. Otherwise, ask the IRA custodian if they have a disclaimer fom that can be completed. The requirements are stated in the following:
http://www.fourmilab.ch/ustax/www/t26-B-12-B-2518.html
Permalink Submitted by Bruce Steiner on Mon, 2008-11-03 03:48
The procedural requirements for a disclaimer vary from state to state. The attorney handling the estate, or the attorney who does the spouse’s estate planning, should be familiar with the requirements, including who has to be given copies of the disclaimer.